Financial aid award letters—notoriously tricky and confusing—are starting to land in students’ mailboxes. To make sense of them, students should use available tools, create a spreadsheet to compare offers accurately, and reach out to their financial aid office if anything seems unclear.
Students seeking help with college costs can expect their financial aid award letter after submitting the Free Application for Federal Student Aid (FAFSA) and meeting other school-specific requirements. Experts say these letters typically arrive around the same time as college admission decisions, but timing varies—some come as early as October, while others may not arrive until April.
Each college crafts its own financial aid award letter, detailing the cost of attendance for an academic year along with grants, scholarships, work-study options, and loans the student qualifies for. When and how these letters are sent—whether by mail, email, or both—differs from school to school.
The wording in these letters can also vary wildly. A 2018 report by New America and uAspire, titled “Decoding the Cost of College,” found that financial aid letters from 455 colleges used 136 different terms just to describe the same federal unsubsidized student loan. Some examples: “Direct Unsubsidized Loan 1,” “Direct Unsub,” and “Unsubsidized Stafford Loan DL.” Shockingly, 24 of these terms didn’t even include the word “loan.”
The report argues that this confusing jargon makes it harder for students and families to make smart financial decisions when choosing a college.
“No federal policy requires standardized terms, consistent formatting, or key details in every financial aid award letter,” the report states. “Poorly communicated aid options can hurt a student’s (and sometimes their parent’s) long-term financial health by hiding basic terms and conditions. Decisions based on unclear or incomplete info leave students at risk of unexpected costs.”
Luckily, there are steps students can take to navigate these challenges and understand their award letters properly.
Steps to Reading a Financial Aid Award Letter
Since every college’s letter is different, students should start by noting any unfamiliar terms or questions they have.
To help decode the letter, students can use the U.S. Department of Education’s College Financing Plan, which includes a sample award letter with clear explanations.
Some students find it helpful to create a spreadsheet comparing award details from each college they’re considering. But Rachel Fishman, deputy director for research at New America’s higher education initiative, warns:
“When making a spreadsheet, try to compare apples to apples. This can be tricky because even cost details—if included—might be incomplete.”
If cost info isn’t provided, Fishman advises looking up the full cost of attendance at the college. “This includes direct costs like room and board, plus estimates for indirect expenses—books, supplies, transportation, and personal miscellaneous costs that are essential for student success.”
Understanding and comparing offers requires some digging. Students should clarify how a college defines terms like “net price”—while the Department of Education defines it as cost after gift aid, some schools include loans in their calculation. Fishman suggests separating grants and scholarships from other aid and checking whether renewable funds (like scholarships) will continue in future years.
“If your decision to attend hinges on a $20,000 scholarship, but the letter doesn’t say whether it’s renewable, call the school and ask, ‘Will I get this next year?’” she says.
Students should also fully grasp any non-grant aid, like loans. Award letters may include federal subsidized/unsubsidized loans, parent PLUS loans, or even private loans (which usually require a co-signer and offer fewer protections).
Still confused? Tools like The Hechinger Report’s Offer Letter Decoder let students upload their letter for a clearer breakdown.
Complicating things further, some award amounts are just estimates. During economic downturns (like the COVID-19 pandemic), amounts may shift.
“Schools do their best to estimate, but if budgets are cut in real time, that’s an area of uncertainty,” says Megan Coval of the National Association of Student Financial Aid Administrators.
“Especially now, I encourage students to contact their financial aid office with questions—whether about the award, family financial changes, or concerns about fall funding.”
Some students may find their aid doesn’t cover all costs, leaving a gap. A New America study found Pell Grant recipients faced an average unmet need of nearly $12,000.
When to Expect a Financial Aid Award Letter
Many colleges are adjusting their timelines after a federal change moved the FAFSA opening to October 1 (instead of January 1). This could mean earlier award letters.
Some schools have adapted quickly, says Marty Somero, financial aid director at the University of Northern Colorado. “The first year, schools scrambled, but now most public and private universities have moved up timelines—even orientations and registrations.”
But delays still happen, says Mindy Schaffer of The Catholic University of America. “Early FAFSA helps, but some schools struggle since the Department of Education’s updates aren’t released until December-February.”
After submitting the FAFSA, students get a Student Aid Report (SAR) within days—either by email (if provided) or mail. This includes the Expected Family Contribution (EFC), a key number in determining aid eligibility.
However, the SAR doesn’t show actual aid amounts—students must wait for individual college award letters for the full picture. Some schools provide online portals where students can track their aid status and see if additional documents are needed.
Award letter timing depends on the school and when the FAFSA was submitted. Experts urge students to file early and note priority deadlines to maximize aid and get awards sooner.
Private colleges often send letters earlier (as early as October/November) since they use their own funds. Public schools may take until Thanksgiving or the new year.
Early action applicants at private schools may get preliminary offers sooner, but public schools usually don’t differentiate between early and regular decision applicants.
Community colleges often have later timelines since students may apply and enroll closer to the academic year.